Quiz | March 2009

Parents of Preteens & Teens:TEST YOUR REFLEXES

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No doubt raising preteens and teens is a challenge. But knowing how to handle common kids-and-money situations can make your life a little easier.

We've compiled ten questions to test your parental reflexes. From credit cards and cars to allowances and part-time jobs, see if you're prepared for these real-life experiences. You just might learn something that'll help you teach your kids the money skills they need to succeed:

Quiz

Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 1 of 10

Your child has been saving half of his allowance and money earned from neighborhood jobs. Now he wants to use the money to buy an expensive iPod. You...

A. allow him to buy it.
B. tell him there's no way he can touch his savings.
C. buy it for him as a birthday gift.

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Quiz

Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 1 of 10

Your child has been saving half of his allowance and money earned from neighborhood jobs. Now he wants to use the money to buy an expensive iPod. You...

You're right!A. allow him to buy it. is correct.

Sorry, wrong! is incorrect.

The right answer is A. allow him to buy it..

Let your kids spend their money, even if you think they're blowing it all on one over-priced toy. If they've exercised the self-discipline to save in the first place, they deserve a reward. Parents should, however, retain some veto power. You may not want them to have a certain item because you think it is too dangerous or inappropriate, for example.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 2 of 10

Your teenager asks if she can have a credit card. You say...

A. sure.
B. no way.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 2 of 10

Your teenager asks if she can have a credit card. You say...

You're right!B. no way. is correct.

Sorry, wrong! is incorrect.

The right answer is B. no way..

If you want your kids to know how to handle credit responsibly, the best way to teach them is with cold, hard cash -- not plastic. Once they master cash, move on to a debit card tied to their own checking account. Talk with your teens about credit so they understand the concept. But they should hold off on their first card until the college years.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 3 of 10

Your son is getting his driver's license, which means your insurance will go up. You...

A. hand over the keys, no strings attached.
B. make him get a job.
C. pay the increased premium -- he is family after all -- but make him pay for his own gas.

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Quiz

Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 3 of 10

Your son is getting his driver's license, which means your insurance will go up. You...

You're right!C. pay the increased premium -- he is family after all -- but make him pay for his own gas. is correct.

Sorry, wrong! is incorrect.

The right answer is C. pay the increased premium -- he is family after all -- but make him pay for his own gas..

Making your child get a job solely to support a car is a costly and time-consuming commitment for a 16-year-old. And handing over the keys with no strings attached just gives your kids a sense of entitlement. Better to split the responsibility by covering the insurance yourself and having him pitch in for gas, parking, car-washing -- and running family errands.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 4 of 10

You're trying to teach your kid about the stock market. She invests her own money in a stock she selected. It loses money. You...

A. tell her that's too bad.
B. pay her back for the loss.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 4 of 10

You're trying to teach your kid about the stock market. She invests her own money in a stock she selected. It loses money. You...

You're right!A. tell her that's too bad. is correct.

Sorry, wrong! is incorrect.

The right answer is A. tell her that's too bad..

Sorry, but that's how the market works. If you like, you can share part of the loss with her and help her figure out what to do with the remaining stock.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 5 of 10

Your son is on the way out the door for a date when he casually asks for $20. You...

A. give it to him, plus something extra for gas.
B. tell him that date and gas money come out of his allowance, as previously agreed.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 5 of 10

Your son is on the way out the door for a date when he casually asks for $20. You...

You're right!B. tell him that date and gas money come out of his allowance, as previously agreed. is correct.

Sorry, wrong! is incorrect.

The right answer is B. tell him that date and gas money come out of his allowance, as previously agreed..

It's important to establish the rules up front. If your child is getting an allowance, you shouldn't be handing over cash every time he heads out the door, or else you defeat the purpose of the allowance: to learn how to manage his own money for the things he wants.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 6 of 10

Your teen works three nights a week and weekends, and her grades have dropped significantly. You...

A. don't do anything; she's almost an adult, and her grades are her responsibility.
B. tell her to pull up the grades and consider cutting back on hours or face quitting altogether.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 6 of 10

Your teen works three nights a week and weekends, and her grades have dropped significantly. You...

You're right!B. tell her to pull up the grades and consider cutting back on hours or face quitting altogether. is correct.

Sorry, wrong! is incorrect.

The right answer is B. tell her to pull up the grades and consider cutting back on hours or face quitting altogether..

Having spending money is nice, but school is more important. If she wants to keep the job, lay some ground rules. The grades come up or the job goes. Be specific by setting a timeline and a grade benchmark. In the meantime, cutting back a few hours is a good compromise.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 7 of 10

Your preteen asks, "Can I have $15 for a new CD? Mom/Dad says no, but all the other kids have it." You answer...

A. of course, punkin!
B. no.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 7 of 10

Your preteen asks, "Can I have $15 for a new CD? Mom/Dad says no, but all the other kids have it." You answer...

You're right!B. no. is correct.

Sorry, wrong! is incorrect.

The right answer is B. no..

Don't give in to your child's peer pressure -- or the pressure to be the "cool" parent. It's important to stand by your spouse. If you crack, your action (and your child) will come back to haunt you. If you really disagree with your spouse, talk it over afterward, but not in front of the children.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 8 of 10

Your daughter routinely asks for an advance on her allowance. You...

A. fork over the cash
B. say, sorry Charlie.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 8 of 10

Your daughter routinely asks for an advance on her allowance. You...

You're right!B. say, sorry Charlie. is correct.

Sorry, wrong! is incorrect.

The right answer is B. say, sorry Charlie..

Most times it's best to say no, especially if the request is becoming routine. You can bet kids hope you'll forget about the money you advanced them. Besides, an allowance is supposed to help them learn about deferred gratification –- how to save up their money to buy things they want. However, there are occasions when an advance or loan may seem reasonable. Use your judgment, but keep good records.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 9 of 10

When should your child open a checking account?

A. When she starts receiving an allowance
B. When she gets a part-time job
C. When she graduates from college

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 9 of 10

When should your child open a checking account?

You're right!B. When she gets a part-time job is correct.

Sorry, wrong! is incorrect.

The right answer is B. When she gets a part-time job.

All kids should know how to manage a checking account (and an ATM or debit card) preferably before they leave home. That means teens should open one as soon as they get a part-time job. Parents, you'll have to cosign or open a custodial account if your child is under 18.

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 10 of 10

Your son got a part-time job. Should you still pay him an allowance?

A. No
B. Yes

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Parents of Preteens & Teens:TEST YOUR REFLEXES

Question 10 of 10

Your son got a part-time job. Should you still pay him an allowance?

You're right!A. No is correct.

Sorry, wrong! is incorrect.

The right answer is A. No.

If the job is paying him what you consider to be a sufficient amount to cover his expenses, you can scale back the allowance or stop altogether. The main purpose of an allowance is to provide kids with a regular income when they don't have earnings from a job, so they can learn to manage money.

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